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Spray May 2013

MARKETBEAT 18 Spray May 2013 growth. Prestige skincare sold in U.S. department stores generated the largest growth at 10%, followed by makeup at 7% and fragrance at 5%, compared to 2011.  “Even though consumer confidence continues to waver, there is momentum at both ends of the price and product spectrum. In 2012, along with smaller categories in beauty, we are seeing investment spending on premium-priced makeup, skincare and fragrance, as well as premium-priced sets, which lead in growth once again. Even in Europe, where the economic environment is more challenging, the major premium-priced category, fragrance, was positive. Premium-priced products remain one of the brightest spots in beauty and will continue to carve out market share across all categories and geographies in 2013,” said Grant. In addition, the U.S. Food/Drug/Mass** channel experienced nearly a 3% increase in sales for total beauty in 2012, versus 2011. Makeup sales posted the biggest increase at 5%, followed by skincare at 3%, while fragrance sales declined 4% in dollar sales, compared to 2011. In National Chain*** stores, fragrance sales grew 7%. “In the U.S., although we have seen some tempering in sales performance, compared to 2011, growth remains positive for both the prestige and mass channels. The trend of prestige beauty outpacing mass beauty continues to be evident since the recessionary period of 2009 and will likely continue into 2013,” concluded Grant.   Korean men believe “appearance is power” According to a report by CCTV.com, South Korean men are starting to place more emphasis on their physical appearance by spending more and more on beauty care products. The traditionally conservative society is at odds with what to make of these new “flower boys,” as they’re colloquially called. South Korean men spent $495.5 million on skin care last year, accounting for nearly 21% of global sales, according to an international market research firm. That makes it the largest market for men’s skin care in the world, even though there are only about 19 million men in South Korea. Amorepacific, South Korea’s biggest cosmetics company, expects the South Korean men’s market to be more than $885 million this year. Part of the explanation for this trend is a massive push by cosmetic companies to use handsome, wildly popular male celebrities to market their products, often aiming their advertising at women as much as men. As a result, South Korean men are barraged daily with messages suggesting that flawless skin is a crucial part of any plan to get ahead at work and in life. “Appearance is power” is a popular catchphrase. However, there are concerns within South Korea that a new generation of men is more interested in appearance than in ability. Kim Ju-duck, assistant professor of Sookmyung Women’s University, said, “Recently, men have been considering their appearances as a higher priority than their own abilities, and this phenomenon led to their interest in plastic surgery or cosmetics. In the past, men received skin care products from their family or girlfriends, but these days, they tend to choose their own products. “Therefore, the male cosmetics market is expanding and the interest in appearance is increasing. I think our society somehow became more focused on looks than one’s actual ability, and I believe this is the wrong way to go,” Kim concluded. *Prestige Beauty: Products sold mainly in U.S. Department Stores. **Food/Drug/Mass: SymphonyIRI Group, Inc.; Total U.S. FDM (excluding Walmart). ***National Chain: NPD BeautyTrends National Chain Fragrance. Australians prefer aerosol deodorant The proportion of Australians using roll-on deodorant has declined by almost 10% in the last five years while more people shift to aerosol, Roy Morgan Research shows. Both forms of deodorant are now used by 39% of Australians aged over 14: aerosols up from 38% and roll-ons down from 43% since 2008. The overall decline in roll-on’s popularity has come largely from a sharp drop in use by women from 57% in 2008 to 50% currently. Although roll-on use has declined across every age group in the period, the greatest shift to aerosols has been among people aged over 35. The proportion of people aged 35-49 usually using roll-on has fallen by almost 17% in five years, against a nearly 10% rise for aerosols. Despite changes within each age group, deodorant type preference still clearly relates to age. The majority of Under 25s usually use an aerosol deodorant, compared to around just one in five Over 65s. Conversely, roll-on deodorant becomes increasingly more popular with age. “Despite declining in popularity across all age groups, roll-on deodorant has maintained its preferred status among Australians over 50,” said Norman Morris, Industry Communications Director, Roy Morgan Research. “Aerosol is still the preferred method for younger people, but Roy Morgan’s research shows an overall decline in deodorant usage amongst 25-34 year olds over the past five years. It is important for deodorant brands to understand the deodorant application preferences of their target groups when developing marketing and communication plans as well as new product development,” he concluded. Spray insecticides gain popularity in Mexico In 2012, sales of spray/aerosol insecticides reached Mx$1.4 billion ($115.5 million), which represents an increase of 5% when compared to the previous year, according to Euromonitor International. This growth is explained by the growing preference of consumers for this format. Spray/aerosol insecticides allow users to use the product in several areas of the house or garden, it is easy to store and it enables users to spray as much product as they consider necessary. U.S. beauty sales strong across categories According to market research firm The NPD group, the total U.S. prestige beauty* industry showed an increase of 7% in dollar sales in 2012 vs. 2011. “Coming off the wave of 2011, one of the most robust sales periods in over a decade for the beauty industry, 2012 has shown some great highs, along with some modest lows,” said Karen Grant, VP & Senior Global Industry Analyst, The NPD Group.  Prestige Beauty Growth by Country: 2012 vs. 2011 Country Dollar% Change U.S. +7% U.K. +5% Mexico +5% France -1% Italy -4% Spain -7% Argentina -10% All of the U.S. prestige beauty categories posted healthy


Spray May 2013
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